Nokia Shares Surge 9% As Company Unveils Layoffs, Restructuring: Retail Stays Bullish

Shares of Nokia ($NOK) jumped 9% on the NYSE on Friday following the company's announcement of significant cost-cutting measures, including workforce reductions and organizational restructuring.

Nokia has let go of nearly 2,000 employees, representing about 20% of its workforce in China, and plans to cut 350 more jobs in Europe, according to Reuters. 

This is a part of the company’s plans to eliminate up to 14,000 jobs to achieve savings of between $870 million to $1.3 billion, announced in 2023.

In an effort to adapt to growing geopolitical challenges, Nokia is also reshaping its Corporate Affairs division. The company has created two new distinct functions: Geopolitical and Government Relations, and Communications. 

Mikko Hautala, appointed as Chief Geopolitical and Government Relations Officer, will report directly to CEO Pekka Lundmark from Nokia’s headquarters in Espoo, Finland. 

Louise Fisk has been promoted to Chief Communications Officer and will be based in London. 

Retail sentiment on Stocktwits remains in the ‘Extremely Bullish’ (79/100) territory. 

The telecommunications giant announced its third-quarter results on Thursday. 

The Finnish company revealed it’s now tracking within the lower half of its full-year comparable operating profit guidance of $2.50 billion to $3.15 billion, versus earlier expectations of reaching the midpoint or just below it, dragging the share price by 3% by the time markets closed. 

Danske Bank has upgraded Nokia’s stock to ‘Buy’ from ‘Hold’ and UBS has reiterated its ‘Neutral’ rating on Friday. 

U.S.-listed shares of the company have gained 38% in 2024 so far and 39% in the last 12 months. 

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